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To: freeus who wrote (104583)	2/24/1999 4:39:00 PM
From: edamo	Respond to of 176387

re: calls... the first and only rule of investing is never to lose money.... take a deep breath, don't be so hell bent on options until you get a grasp of what they are and more importantly how they move with the underlying...volatility is something that you need to understand....it is the basis for the pricing of the option...a standard deviation which attempts to take into account the price swings the underlying makes over the term of the contract...in overbought or oversold situations the volatility can explode the option price...usually the best time to set a position..MAKE SURE you are on the right side of the trade...e.g. don't sell calls at the bottom of the trough...or conversly puts at the top....if you catch the correct moment you can profit substantially with no movement in the underlying...but the volatilty adjusting to somewhat(if it exists)of a norm....close strike and expiration usually less volatile...move point for point...leaps usually a good indication of what underlying issues are afforded high volatilty factors...msft perfect example...jan 01 200 zmfai with an average volatility getting a 22 premium...someone betting that msft will be 222+ in twenty some months...a more static or less growth stock may have a far out term/strike premium not worth considering... try make believe trading, have patience, and when you are confident put your money on the table...good luck ed a.